The opportunity cost of the capital invested in pharmaceutical research and development (R&D) to bring a new drug to market makes up as much as half the total cost. However, the literature on the cost of pharmaceutical R&D is mixed on how, exactly, one should calculate this "hidden" cost. Some authors attempt to adopt models from the field of finance, whereas other prominent authors dismiss thi...

This paper explains the BEA methodology for computing historical cost and replacement cost measures of the net stock of capital in the U.S. economy. It is demonstrated that there exists a threshold rate of inflation in the price of capital goods that keeps the percentage difference between the two capital stock measures constant. Hence, over periods when average inflation in the price index for...

This paper proposes three models of social capital and growth that incorporate different perspectives on the concept of social capital and the empirical evidence gathered to date. In these models, social capital impacts growth by assisting in the accumulation of human capital, by affecting financial development through its effects on collective trust and social norms, and by facilitating networ...

The paper addresses the two-fold rise in teacher-student ratio in the American K-12 school system in the post-World War II period accompanied by the evidence of a decline in the relative quality of teachers. We develop a dynamic general equilibrium framework for analyzing the teacher quantity-quality trade-off and offer an explanation to the observed trends. Our OLG model features two stages of...

This paper contributes to the growing literature on social capital and firm performance by distinguishing between " bridging " and " bonding " social capital and by investigating the moderating effect of several variables. Drawing on meta-analytic data from 50 empirical studies, we show that social capital positively influences firm performance and that bridging and bonding social capital are t...

Literature provides several intellectual capital models. Nevertheless, the need for adapting theoretical models to the new social and economic trends justifies an effort in improving previous proposals. Taking into account the main contributions in the field, the Intellectus Knowledge Forum presents to the international scientific and professional community a new model to better understanding t...

The so-called age of AI, industry 4.0, the fourth industrial revolution, etc. all attempt to conjure into existence a new technological paradigm. Should we believe hype? This paper draws on neo-Schumpeterian and régulation theory widen scope this debate examine techno-economic institutional discontinuities. In exploring these discontinuities, argues, first, that growth regimes are not necessari...

A regulator resolving a bank faces two audiences: depositors, who may run if they believe the regulator will not provide capital, and banks, which may take excess risk if they believe the regulator will provide capital. When the regulator’s cost of injecting capital is private information, it manages expectations by using costly signals: (i) A regulator with a low cost of injecting capital may ...

Technological discontinuities pose serious challenges to top managers’ attention. These discontinuities, which often occur at the fringes of an industry, are usually driven by innovative and (often) venture capital-backed start-ups creating new products and transforming existing industries in ways that are difficult for incumbent managers to understand against the backdrop of their existing cog...